What trump’s steel, aluminum stariftruses can mean to Canada – National

US President Donald Trump announced on Monday that he is imposing a 25 percent duty on steel and aluminum against several countries, including Canada, in his latest Salvo of trade threats against other nations.

This is not the first time, but Trump has imposed such tariffs against Canada – in 2018 he imposed 25 percent on steel and 10 percent on aluminum. These tariffs lasted for about a year.

Prime Minister Justin Trudeau has not yet commented on the proposed threat.

But when tariffs take effect this is where you need to know about Canada’s trading conditions between both products with the US

Canada is the largest exporter of steel for the United States, according to data from the US Ministry of Commerce, with about 566,000 tons Sent across the border last month alone.

According to the Canadian Steel Producers Association, A total of $ 20 billion in trading of steel between the two countries takes place annually with 40 percent of imports coming from Canada.

The US Census Bureau via the American Iron and Steel Institute showed a total of 6.6 million net tonnes imported from Canada to the United States just last year, with Brazil sent a little more than four million and 3.5 million from Mexico.

More than 9,500 aluminum workers live in Canada, According to the Aluminum Association of CanadaWorking in an industry, says it, generates more than “$ 200 billion in economic production in the US economy alone.”

The United States imports more aluminum than steel with about half of all aluminum coming from other countries. The majority of aluminum imported into the United States comes from Canada.

Last year, Canada exported 3.2 million tons – twice the amount of the following nine countries together, According to the US Ministry of Commerce.

The Aluminum Association in the United States notes that approx. 90 percent of us scrap aluminum comes from either Canada or Mexico, noting that it would take billions of dollars in investments for decades to make the United States “fully self -sufficient for its metal needs.”

Almost any industry that uses steel or aluminum will be affected, experts say.

“If you think of the appliances we have at home, many of them use this,” said Baron, professor of operating management at the University of Toronto, Global News.

“Also in terms of manufacture and machines, again, all our machines are from steel. If you want to increase your production base in the US … you will have good steel so you can manufacture, you can get your own machines and so on. So these are things that will be injured and prices will rise, ”

It is not only manufacturing companies that could not be hit either, everything from car manufacturers to construction and even beverage production

“Steel goes into buildings, it goes into bridges and goes into schools, it goes into a number of products we produce,” said Philippe Pourreaux, a partner for value creation in Pwc Canada. “You also think about packaging your soda comes into aluminum cans, the same with beer and other products.”

Ontario Premier Doug Ford criticized the customs on Monday and said the province would “respond hard.”

Ontario is home to six of the country’s 13 steel plants, including Arcelormittal Dofasco in Hamilton, ont., Whom Pourreaux calls a “hotbed” for steel production, Stelco in both Hamilton and Nanticoke, Ont., And Algoma Steel in Sault Ste. Marie, ont.

Pourreaux notes between 70 to 80 percent of Canada’s steel are produced out of Ontario, although some are also produced in provinces such as Quebec, Alberta and Manitoba.

However, it is not only Ontario that could be hit. According to Investissement Quebec, Quebec accounts for almost 90 percent of aluminum produced in the country.

A duty on aluminum, like steel, would affect more than just the plants that produce the products. The communities built around them would also experience problems.

“These are plant cities based on the aluminum industry,” said Saibal Ray, James McGill chairman of Supply Chain Management at McGill University. “All the other people who are dependent on the plant, whether it is restaurants, whether it is people driving trucks, everything will be affected.”

He added, while the tariffs may not lead to layoffs on the plants themselves, customs rates can lead to companies that make investments in the United States to avoid customs or scrap expansion plans that can prevent new job hires.

Last time Trump introduced Customs for Canada’s steel and aluminum industries, he quoted national security as the cause.

This time, Trump’s trade adviser Peter Navarro said the measures would help producers in the country and strengthen America’s economic and national security.

“Steel and aluminum stiffs 2.0 will stop foreign dumping, increase domestic production and secure our steel and aluminum industries such as the backbone and the pillar industry in America’s economic and national security,” he told journalists.

“This is not just about trade. It’s about ensuring that America never has to rely on foreign nations for critical industries such as steel and aluminum. “

Pourreaux said there is uncertainty as to why Trump is pushing tariffs this time, but he thinks Trump’s “America First” position could be part of it.

However, he added that it was difficult to say whether it was a short or long -term goal as it could take several years to open new plants or revive previously abandoned facilities during Trump’s last period.

Baron said he believes that a major purpose behind Toldsrates for Trump is to change things by using it as a negotiating tactic.

“One of the questions when you run a great administration like the United States is that the standard ways to do things take forever,” Baron said.

By putting out the customs threats early, Trump is able to get moving from other countries. Baron pointed to the recent actions taken by Canada and Mexico on their shared borders with the United States, which led to the exposure of widespread 25 percent duty rates.

“He doesn’t have years, he wants things to move fast, so I think this is the most important motivation for him,” he said.

–With files from the Canadian press